Banks attract record Rs3.88tr deposits in 2021

miafridi

Prime Minister (20k+ posts)
61d8e0a0049a9.jpg


KARACHI: Banks recorded the 10-year’s highest deposit growth of 22.7 per cent in the calendar year 2021 mainly due to higher remittances, export proceeds and a sharp depreciation of the rupee.

The latest data issued by the State Bank of Pakistan (SBP) on Friday showed that the deposits of scheduled banks increased by Rs3.887 trillion, or 22.75pc, to Rs20.972tr from January to December 2021.

Data showed the deposits were increased by Rs1,574bn in CY19 and by more than double Rs3,203bn in CY20. During the last 10 years, the lowest increase in deposits was noted in CY15 when it grew by 9.9pc against the preceding year’s 10.2pc. However, the growth in deposits remained 11.2pc in CY18 and 12pc in CY19.

Investments in risk-free govt papers also surge by 23.7pc
The rapidly growing deposits allowed banks to invest heavily in the government papers, which also attracted a record sum last year. Bankers said the increase in deposits was due to record high remittances, higher export proceeds and devaluation of the rupee which translated into a higher amount for the foreign currency holders.

During the first three-quarters of the CY2021, almost all banks showed good profits in their balance sheets reflecting the positive impact of record growth of the deposits.

Meanwhile, the banks’ investments in risk-free government papers surged by 23.7pc, more than the growth in the deposits in percentage terms. The details showed that the banks parked Rs2,706bn during CY2021 taking the total stock of the investment to Rs14.123tr.

Banks have been earning most of their profits through investment treasury bills, Pakistan Investment Bonds, etc as the government depends largely on commercial banks to borrow money for budgetary support.

Under IMF conditions, the government has not been borrowing from the SBP since 2018. However, the bank investments posted record growth in CY2020 as it jumped by 38pc, or Rs3,186bn, to Rs11.552tr.

The bank advances also noted a growth of 19.8pc or Rs1,682bn during the year, reflecting the higher economic activities. The SBP said the lending to the housing and construction sector rose by 85pc.

The latest Quarterly Compendium: Statistics of the Banking System for July-September 2021 (Q3CY21) revealed that the expansion (advances) has been particularly contributed by the domestic private sector advances, which increased by 3.8pc during Q3CY21 against a contraction of 0.5pc in the corresponding period of the last year.

The total assets of the banking sector rose 20.9pc to Rs28.790tr till September 2021 against Rs23.808tr in September 2020.

Published in Dawn, January 8th, 2022

https://www.dawn.com/news/1668247/banks-attract-record-rs388tr-deposits-in-2021
 
Advertisement

MADdoo

Minister (2k+ posts)
People don't have trust in the government, this is why they are not taking their money out of banks. Nobody wants to invest in this country. this is why safe keeping is in banks only to retain whatever they have.
 

aqibarain

Minister (2k+ posts)
People don't have trust in the government, this is why they are not taking their money out of banks. Nobody wants to invest in this country. this is why safe keeping is in banks only to retain whatever they have.
sorry to see that... was it different in previous times?
 

aqibarain

Minister (2k+ posts)
O

Yes very different. You can see the graph on first post. People are shying to invest or doing business. They are keeping money to buy dollar, invested interest rate or saving it.
taxtile industry was rooting up their machinery and were setting up in Bangladesh...
sorry to see you lived in Switzerland and in 2018 suddenly we went bankrupt and IK had to beg foreign countries for money....

apni tarha k chution ko chutia banao....
 

Oppostion Is Mafia

Minister (2k+ posts)
People don't have trust in the government, this is why they are not taking their money out of banks. Nobody wants to invest in this country. this is why safe keeping is in banks only to retain whatever they have.
People have trust only on Imran Khan and his government they know other Zardari and Sharif are dakus. At least speak the truth and facts haraam kor Patwaris Exposed.😁
 

Pracha

Minister (2k+ posts)
Strong and healthy banking system plays a pivotal role in growth of the economy. It provides the grease that keeps the wheels moving. Record exports, impressive remittances and of course depreciation of rupee - all are good omen for our export industry.

Dollar was going out through hundi and exports were stagnant during the 10 year long rule of the mafias.
 
Sponsored Link